ASIC has accepted enforceable undertakings from two former Adelaide-based advisers of Macquarie Equities Limited (MEL).
The undertakings were offered to Paul Kennedy and Bradley Dohrmann following an investigation by ASIC into their conduct between September 2007 and July 2008, regarding options trading by clients utilising the Macquarie Trading Power product.
ASIC was concerned both Kennedy and Dohrmann failed to adequately explain the risks of trading in accordance with their strategy.
The regulator was also concerned that both failed to ensure that option trading for all relevant clients was conducted in accordance with the mandated MEL framework.
As a consequence, those clients were exposed to increased risk from about January 2008 that resulted in them incurring significant losses.
Kennedy has undertaken not to participate in the financial services sector for a period of four years, while Dohrmann has agreed to not participate in the industry for a period of two years.
